Skip to main content

Microsoft Confirms MP3 Player & New Service

According to the NYTimes, the Microsoft Corporation confirmed that it was developing a portable music player to compete with the iPod from Apple Computer for a share of the $4 billion market for portable entertainment devices.

The first products are to go on sale this year and are being developed under the code name Zune, the general manager, Chris Stephenson, said yesterday in an e-mailed statement. Part of the project is a service that will compete with Apple�s iTunes.

Microsoft is abandoning a strategy of relying on partners to produce devices with its Windows software to compete with iPod. They so far have failed to dent Apple�s 77 percent share of the market in the United States for digital music players, according to the market researcher NPD Group Inc. Even with its own product, Microsoft has an uphill climb.

�It will take an awful lot for Microsoft to dislodge an entrenched competitor like Apple,� an analyst with Jupiter Research, Michael Gartenberg, said. �Given Apple�s history with iPod, it�s not like they�re going to sit back while Microsoft enters the market.�

Popular posts from this blog

How Online Video Exceeded Pay-TV Revenue

The global streaming industry has spent the better part of a decade chasing subscriber counts as the primary metric of success. That era is now formally over. New market data from Omdia confirms that the industry has crossed a decisive threshold; one that shifts the competitive playing field from growth-at-all-costs to monetization discipline. For senior executives navigating media, advertising, and technology strategy, the implications extend well beyond entertainment. A Historic Revenue Crossover Online video revenue increased 13.5 percent to $176 billion in 2025, while pay-TV revenue declined 4 percent to $170 billion; marking the first time in the industry's history that streaming has surpassed legacy pay-TV in revenue terms. This is not a rounding error or a statistical artifact; it represents the culmination of more than a decade of structural disruption to the traditional broadcast and cable TV model. Global subscriptions to online video services reached 2.24 billion by the ...